Pound bounces from lowest since 2016
The only real thing the pound has going for is technical support.
It's firmly in the 1.2000 range and that's where it bottomoed in 2016 and 2017. It fell as low as 1.2015 on Friday but it's up to 1.2075 today.
It always feels like it's one headline away from hitting a flash-crash style airpocket.
On the flipside you can make the argument that a no-deal Brexit is still a remote possibility and that positioning is extreme. As Greg pointed out, the net short is the most-crowded since 2016 and we can see how that ended in a 2000+ pip rebound.
I'm also starting to see headlines like the Bloomberg story on the weekend titled: "Pound Falling to Parity Is an Idea That's Starting to Take Hold." That kind of chatter about levels that are far away and previously unthinkable is often the kind of thing you see near a bottom.
